China Energine's profit drops by 75% in H1 2013

Aug 28, 2013 - Chinese wind power equipment maker China Energine International (Holdings) Ltd (HKG:1185) saw its net profit in the first half of 2013 fall by 75% year-on-year to HKD 9.72 million (USD 1.3m/EUR 1m).

The bottom line result included non-recurring gains on asset sales of HKD 3.63 million in the reporting period, compared to a gain of HKD 33.9 million a year before, the company said on Wednesday.

January-June revenue rose by 14% to HKD 282.6 million. The wind power products division booked revenues of HKD 165.44 million, up from HKD 128.4 million a year back. Revenues from the operation of wind farms stood flat at HKD 15.7 million. China Energine also boosted its sales of rare-earth permanent magnet motor products to HKD 23.5 million, while trading of materials revenue declined to HKD 63.7 million.

During the six months, the company’s direct-drive wind turbine faced significant competition at home, but “was highly recognized by wind farm developers within the industry for its simple structure, high reliability, high efficiency and low operation and maintenance costs”. China Energine said it plans to focus on the manufacturing of 3-MW and 5-MW turbines in the future.

(HKD 1 = USD 0.129/EUR 0.096)

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